Compass Point raises Coinbase: Sees potential for a mini Alt Season this summer

May 12, 2025 10:47 PM AEST | By Investing

Google News:

Compass Point raises Coinbase: Sees potential for a mini Alt Season this summer

Recent News

Autohome Inc. Announces Results of 2024 Annual General Meeting

Smarter Tournaments. Safer Play. Powered by Baseline x YAS.

CKGSB Dean Li Haitao Illuminates on China's AI Trajectory at 2025 Summ...

Alfredo alla Scrofa: 111 Years of History for a Roman Culinary Institu...

Investing.com -- Compass Point upgraded Coinbase (NASDAQ:COIN) to Neutral in a note Monday, citing the “growing potential of a mini ‘Alt Season’ this summer” that could reignite retail trading activity and improve earnings prospects.

The firm explained that while April and May trends suggest Coinbase may generate just $1 billion of annualized EBITDA, analysts at Compass Point noted “green shoots for a resurgence in retail trading driven by higher Altcoin prices.”

They added that Coinbase’s fundamentals have “decoupled from BTC prices,” pointing out that while Bitcoin is up 10% year-to-date, Coinbase shares are down 20%.

“We believe COIN’s fundamentals are driven by Altcoin prices which influence retail trading and USDC supply,” Compass Point wrote.

“Retail trading and USDC/interest income are still COIN’s core profit drivers,” while other revenue lines such as institutional trading and blockchain rewards offer lower margins or limited contributions, said the firm.

Compass added that Altcoin prices remain 20–30% lower year-to-date, which has weighed on retail sentiment.

However, the firm believes crypto markets are in “early phases of a 2Q rebound,” and underleveraged traders offer “upside optionality if traders lever up in a risk-on environment.”

Still, structural challenges are said to remain. “Major CEXs typically list new Altcoins at peak prices,” the analysts said, highlighting $TRUMP and $DOGE as examples, both of which trade well below their listing levels.

Additionally, they warned of persistent “toxic dynamics” from venture capital–backed token unlocks, estimating $3–$4 billion of monthly supply hitting the market in coming months.

While Compass Point doesn’t expect a full replay of the 2020–21 Altcoin boom, they noted, “Alts typically rebound as BTC approaches new highs,” leaving room for a tactical rally that could temporarily lift Coinbase’s fortunes.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.